7 December 2018 Afternoon Session Analysis
Dollar edged higher prior to Fed’s hawkish comment.
Greenback strengthened against six major currencies before European session amid Fed’s Chairman Jerome Powell speech which delivered a hawkish tone regarding US economy along with better job creation and higher wages. Powell ended the speech with a compliment for US labor market while investors will now eye on the fourth rate hike this year during Fed’s meeting on 18-19 December. However, dollar gains on the dollar were limited by fear towards future rate hike which might be paused amid escalating trade wars and the closing in of neutral rates. Dollar index tick up by 0.03% to 96.75 as of writing. In other news, pair of GBP/USD fell by 0.15% to 1.2765 after rebounding from its low level yesterday. Tensions continues to weigh on Brexit as the deadline for Parliament vote gets closer. Current outlook on Brexit is the proposal by Senior Tory to delay the vote while UK Prime Minister Theresa May struggles to break Brexit Deadlock.
In the commodities market, crude oil price plunged 1.16% to $51.05 per barrel after meeting of OPEC failed to finalize the cut on global crude output. Despite a positive reading on yesterday’s Crude Oil Inventories data, investors worry that if OPEC fails to make a final decision by end of this week, oil prices will continue to tumbles. On the other hand, gold price edged higher by 0.14% to $1239.30 a troy ounce ahead of today’s Nonfarm Payrolls data which causes investors to seek short-term safe-haven gold.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 18:00 | EUR – GDP (QoQ) (Q3) | 0.2% | 0.2% | – |
| 21:30 | USD – Average Hourly Earnings (MoM) (Nov) | 0.2% | 0.3% | – |
| 21:30 | USD – Nonfarm Payrolls (Nov) | 250K | 200K | – |
| 21:30 | USD – Unemployment Rate (Nov) | 3.7% | 3.7% | – |
| 21:30 | CAD – Employment Change (Nov) | 11.2K | 10.3K | – |
| 02:00
(7th) |
CrudeOIL – US Baker Hughes Oil Rig Count | 887 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing near the resistance level 96.80. MACD yang illustrate diminished bearish momentum suggest index to further its gains after a breakout above the resistance level.
Resistance level: 96.80, 97.00
Support level: 96.60, 96.30
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level 1.2780. MACD which illustrate diminishing bullish momentum suggest the pair to extend its retracement towards the support level 1.2740.
Resistance level: 1.2780, 1.2815
Support level: 1.2740, 1.1700
EURUSD, H4: EURUSD was traded lower while currently testing near the support level 1.1360. MACD which display diminishing bullish momentum suggest the pair to extend its losses after a breakout below the support level.
Resistance level: 1.1400, 1.1435
Support level: 1.1360, 1.1325
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level 112.70. MACD which illustrate bullish signal and the formation of golden cross suggest the pair to extend its gains towards the resistance level 113.05.
Resistance level: 113.05, 113.40
Support level: 112.70, 112.30
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level 0.7220. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses after a breakout below the support level.
Resistance level: 0.7260, 0.7290
Support level: 0.7220, 0.7185
NZDUSD, H4: NZDUSD was traded lower while currently testing near the upward trendline. MACD which illustrates diminishing bearish momentum suggest the pair to rebound from the upward trendline towards the resistance level 0.6900.
Resistance level: 0.6900, 0.6955
Support level: 0.6855, 0.6800
USDCAD, H4: USDCAD was traded lower following prior breakout from previous support level 1.3400. MACD which illustrate starting bearish signal suggest the pair to extend its losses towards the support level 1.3355.
Resistance level: 1.3400, 1.3450
Support level: 1.3355, 1.3315
USDCHF, H4: USDCHF was traded lower while currently testing near the support level 0.9925. MACD which illustrate bearish momentum suggest the pair to extend its losses after closing its candle below the support level.
Resistance level: 0.9965, 1.0000
Support level: 0.9925, 0.9880
CrudeOIL, H1: Crude oil price was traded lower following prior retracement from the resistance level 51.60. MACD which illustrate diminished bullish momentum suggest the commodity to extend its retracement towards the support level 50.50.
Resistance level: 51.60, 52.30
Support level: 50.50, 49.55
GOLD_, H4: Gold price remains traded within an upward channel following prior rebound from the support level 1235.00. Due to lack of signal from the MACD, a breakout above or below the channel is required for further confirmation before entering the market.
Resistance level: 1241.60, 1246.40
Support level: 1235.00, 1228.00